Investment Q&A

Q: For the RRSP and TFSA account , Is there any rule by CRA that you have to invest certain percentage of the portfolio in Canadian equities?

Q: Should I be looking at PUR for a tax loss or adding on weakness? Down 22% YTD but only hold a 3% position in my portfolio. Only stock I hold in the space.

Q: Hi the great 5i team, following your portfolio suggestion, we finally turn a losing into a gain this year. What we want to know is related to capital gain / loss. If net loss 2016 is 20000 and net loss from other years is 80000, what would be the amount of total capital gain this year without paying tax ? Thanks always.

Q: You mentioned today that RBN distributions last year was 77% return of capital.

Can you list some other high yielding tickers with a high return of capital, I know there are some REIT's in that category.

Q: What are your thoughts on tax loss selling either or both of these names. Is there a danger of being cought out of the stock?

Q: As it is tax-loss-selling season, what are two or three of your favourite candidates in this space (that could have a bounce back in the new year)? Cheers.

Q: If the Trump tax plan goes through on corporate taxes, this would be a real plus for canadian companies that do a large part of there business in the USA, am i right on this, and what large companies of our's would really benefit?
Thank you

Q: Please advise how long I have to wait to buy back a stock I have sold for tax loss purposes. Thanks

Q: I wish to realize a capital gain on a number of positions. I also plan to immediately re-purchase these same positions. From a tax standpoint, can I simply sell and then re-buy straight away (e.g. a few seconds/minutes later), or do I need to wait some period of time? Thank-you.

Q: Hi Peter,

Kudos to you and Ryan and team for the great upgrades to the website.
It looks like tax-loss selling this year could present some interesting opportunities, especially in certain resource sectors like precious metals and natural gas that have been beaten down. I have been compiling my own buy list but would be interested in seeing what yours looks like.
Please provide three names in each of the following sectors that you would look at during the next few weeks of TLS: [1] precious metals, [2] energy, [3] general canadian small to mid cap.
Also can you comment on the period of tax-loss selling and how consistent this is year to year?)

Q: In a self directed rrif i understand there is no yearly maximum withdrawl rate ! Is this true ? Thanks.

Q: Is OIH (a U.S. ETF) worth considering for a TFSA?

Q: I asked a question about staying in unregistered equities or paying off my mortgage at 2.79% a few days back. I was a bit surprised for equity guys to tell me to pay off my debt at 2.79%. I get it and basically asked the question because that is what I am likely to do...however doesn't that seem like a pretty low bar even when risk is factored in? Even if you assume I would be taxed at highest rate of 33% you only need to get me 4.2% to come out ahead. So can I interpret your answer that you expect your balanced equity portfolio to return below 4.2% in 2018 and that you fear your current run of 8% annual returns might be coming to an end?

Q: I own SVR which has a currency hedge. What are the consequences of this when selling SVR ?

Q: Something just occurred to me: if you are holding a stock that has dropped significantly, and you plan to keep holding it for the dividend and future growth (ENB in my case), does it make sense to sell it to record the loss for tax purposes, and than re-buy it? Thank you.

Q: Is your subscription cost tax deductible as a carrying charge (management expense) provided investments are outside of TFSA's?

Q: This is just a comment on Connie's question regarding RIF withdrawal.
If Connie doesn't need the cash, withdrawal can be in kind by transferring the security to her cash account. At TD they do it without any charges. Then she can sell the stock at a more opportune time or when the cash is needed.

Q: Just a comment on the answer you gave to the question posed by Kolbi on Llloyds bank. Unless the rules have changed very recently I believe the UK has no witholding tax on dividends paid to foreign residents. UK residents have a $10K dividend tax free allowance (reducing to $4K next year) after which they are taxed 7.5%. Don't feel to sorry for them though, their TFSA is $40K a year!

Q: I am an avid reader on the Q&A daily and find I get most of my thoughts clarified by using the history of the questions. A great service. But I am trying to sort out which investments are best held in an RRSP for my personal situation. I am 67 ,retired with no pension and live on the income from my investments which is sufficient to maintain my lifestyle. I do not believe in owning interest bearing investments because of the low yield/risk relationship and tax treatment. I prefer to buy preferreds from blue chip companies like the banks as my "fixed income" because of the obvious tax treatment. I also like covered call ETFs like ZWB, ZWC etc. for the income and downside risk mitigation. I do not invest in US stocks preferring to diversify into the USA using Canadian companies that benefit from their big US presence(TD etc.). It seems to me that given this situation, holding anything in an RRSP has a tax disadvantage. Any tax on dividends earned in the RRSP is delayed until I take the money out but then I will be taxed at the full rate instead of enjoying the "discounted" tax rate on dividends. ROC is even worse because in a non-registered account I effectively pay capital gains when sold but the ROC would be fully taxable when I take it out.
If my reasoning is correct, it really does not matter much what is kept in a registered vs. a non registered fund. Can you tell me if I am looking at this correctly?

Thanks
Don

Q: ARE DIV. & CAP GAINS NOT TAXED ON BOTH THESE ACTS
TNXS